Council Voted To Add Sales Tax Question To November Ballot
After a unanimous vote last Monday by Eureka city councilmembers, a sales tax question will now appear on the November 5 general election ballot for residents of Eureka. The council is asking for a 1% sales tax for up to 20 years to pay for the reconstruction of River Street. The project is set to begin in 2020 and is estimated to cost $3.6 million, of which $1 million will come from a KDOT grant and $2.6 million will be financed by general obligation bonds. The city’s annual payment is currently estimated to be $220,000 for 20 years, based on a 3.25% interest rate.
If approved, the 1% tax would go into effect in April 2020, bringing Eureka’s sales tax up to 10%. Currently, the sales tax is at 9%, including 6.5% for the state, 1% for Eureka city street projects and 1.5% for the Greenwood County Hospital. The current 1% for city streets will sunset in 2025, the .5% for the hospital will sunset in 2022. The additional 1% for the hospital does not have an end date.
In previous meetings, the council has discussed that the current 1% for city street projects generates approximately $275,000 each year. However, figures presented at last week’s meeting show that the 1% sales tax has generated an average of $332,507.97 for the last five years. According to the city clerk’s office, the sales tax brought in $354,000 in 2018.
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